Soaring Global Fuel Prices: How OFS is Navigating Supply Chain Challenges in the Furniture Industry

Over the past several weeks, rising fuel prices have become more than just another international headline. They have become a real cost issue for businesses and households here in New Zealand. The renewed conflict in the Middle East has continued to disrupt one of the world’s most important energy and shipping corridors, keeping pressure on global oil markets and freight networks. Reuters reported on 12 April that Brent crude had climbed back above US$100 a barrel as tensions around the Strait of Hormuz escalated again. Earlier reporting also showed that physical oil prices, diesel markets, tanker rates, and shipping insurance had all come under severe pressure as the conflict disrupted flows through the region.

For New Zealand, that matters quickly. We are a trade-reliant country, and higher fuel costs do not stay confined to the pump. MBIE says petrol and diesel prices in New Zealand are expected to stay high and may continue to rise in the coming weeks due to global pressures, even though national fuel stocks remain stable. That means the issue is currently less about local shortage and more about rising costs flowing through international shipping, domestic transport, warehousing, and final delivery.

🚚 How Rising Fuel Prices Affect Supply Chains

When oil and diesel prices climb rapidly, supply chains feel the impact at multiple stages.

At the international level, shipping carriers and logistics providers often respond by adding fuel-related surcharges, emergency bunker surcharges, and war-risk premiums. Reuters reported that Maersk introduced emergency bunker fuel surcharges, while maritime insurance costs and tanker rates also jumped sharply as the conflict widened. Hapag-Lloyd has said the disruption is costing it around US$50 million to US$60 million per week, with some of that likely to be passed on to customers.

At the New Zealand level, the impact continues through local freight networks. Diesel is especially important here because road freight carries a large share of goods movement across the country, including warehouse transfers and last-mile delivery. MBIE has described diesel as New Zealand’s most strategically important fuel, and Transporting New Zealand has said rising fuel prices are placing increasing pressure on freight operators. Its March commentary also noted that fuel is the second-biggest freight cost component after wages, meaning diesel spikes can quickly feed through into transport pricing.

🌳 What This Means for Oak Furniture Store

At Oak Furniture Store, we are seeing that same pressure across our supply chain.

As an international furniture business, we source timber from North America, manufacture overseas, and deliver products across both New Zealand and Australia. That means our cost base is affected at multiple points when fuel and diesel prices rise sharply.

Our overseas freight and logistics partners have already raised surcharge costs, which means we are now paying extra charges on furniture movement before products even arrive in New Zealand. On top of that, our domestic freight and delivery partners have also increased fuel-related charges locally, which means the cost of moving each individual furniture item within New Zealand has gone up as well.

In simple terms, this is not one single increase in one part of the chain. It is a layered increase across international freight, domestic transport, and final delivery.

💚 How Oak Furniture Store Is Absorbing Rising Delivery Cost Pressure

For Oak Furniture Store, rising diesel and transport costs create pressure across every stage of delivery. Furniture is large, heavy, and more costly to move than standard parcel goods, which means each item is more affected by freight charges, handling costs, and fuel-related surcharges. From international shipping to local transport within New Zealand, rising diesel prices increase the cost of moving every piece through the supply chain.

Even so, throughout March and April 2026, we have chosen to keep our New Zealand delivery charges unchanged, even though our own freight and delivery costs have gone up. We know this is already a challenging time for many NZ households, and wherever possible, we would rather absorb some of that pressure than pass it on straight away.

💰 What Could Change from May

That said, we also want to be transparent.

If fuel and diesel prices remain at current levels through April, we expect we will need to apply an approximate 5% increase to New Zealand delivery fees from May 2026. This is not a decision we take lightly. It reflects the reality that our overseas and domestic freight partners are already charging higher surcharges, increasing the cost we pay on every furniture item we move.

Our goal is to stay practical, fair, and upfront with customers. We will continue monitoring the market closely and do our best to keep any changes as measured as possible while maintaining reliable service and nationwide delivery coverage.

🎁 A Practical Reason to Shop in April

For customers already planning a furniture purchase, late April may be a smart time to shop while current delivery rates still apply.

To make things a little easier, we are currently offering free shipping on in-stock orders over $1000 as part of our ANZAC Day promotion. It is a great opportunity to save on pieces you love while taking advantage of stock already available, before any possible delivery fee adjustment from May.

Browse our in-stock collection and make the most of the offer while the promotion lasts.